The first month of the new trading relationship between London and Brussels showed a significant decline in commercial activity between Britain and large EU countries, the Office for National Statistics said. This plunge in trade between the European Union and the United Kingdom was mainly triggered by Brexit-related issues.
According to the statistics bureau, British goods exports to the EU, excluding non-monetary gold and other precious metals, fell by 40.7% in January 2021 compared to December 2020. During the reporting period, imports from the European region slumped by nearly 29%.
The slowdown in commercial activity between the UK and EU is attributed to the end of the Brexit transition period as well as another lockdown in Britain. Notably, in early January, the country reported new strains of the coronavirus infection. As a result, its gross domestic product dropped by 2.9% compared to December last year. In addition, declining trade stems from more complex customs requirements at the border and unforeseen costs related to cross-border trade.
